All that equity is a safety net for any homeowner who finds themselves in a potential foreclosure situation.

This would be done in a normal residential kitchen — no commercial appliances.I’m trying to figure out whether I should allow this or not, and I’d like to hear what others have experienced.Here are the key details and concerns:• Type of business: cottage-food style baking (sourdough)• No employees• Potential issue: customers picking up from the property• Main concerns:– Liability if someone gets sick or injured on property– Violation of “residential use only” lease language– Parking/traffic impacting the other unit– Increased wear/tear, fire risk, or sanitation issues– My insurance not covering business activity• Alaska does allow cottage food operations, but as the property owner, I know I can still be on the hook if something goes wrong.I don’t necessarily want to shut her down completely — it sounds small-scale — but I also don’t want to open myself up to unnecessary risk.For those who’ve allowed or denied similar situations:- Would you allow a tenant to run a small sourdough/baking business?

I’d actually focus less on finding someone local and more on finding someone who truly specializes in real estate.

Line up funding before demo by securing a hard money term sheet and one private lender, build a simple scope focused on safety and rent/value drivers, and hire a vetted GC with milestone draws and lien waivers.

FIRE? 

They want to know you won’t blow the rehab budget, stall out, or panic when something goes sideways.Once I had one project under my belt with clean documentation, lenders stopped questioning my ARVs and started competing for my business.A few lessons from that first deal:• Show up with a real scope of work• Know your comps better than the lender• Bring a contractor who’s licensed, insured, and organized• Present the numbers like a business, not a hopeAfter that, funding becomes a systems game instead of a confidence test.

The key lesson: when the numbers are clear and the demand is strong, fast execution creates real momentum and profit.

It’s just math and risk.Most of the homes investors buy off the MLS are properties that retail buyers can’t or won’t touch, outdated systems, safety issues, old roofs, bad layouts, deferred maintenance.

Many of them only attract unreasonably CHEAP owners who will immediately fire you if they find someone else cheaper or you won't capitulate to their cost-cutting demands.

Run your numbers as if it were a long-term rental too — that gives you a safety cushion.And don’t underestimate the value of a good cleaner and handyman — they’ll make your life much easier.Happy to connect and share insights as you move forward!